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Otoyal Motor Company

In:

Submitted By SamerYako
Words 1354
Pages 6
Problem
The main problem with OMC’s corporate strategy was that it failed to examine the current and anticipated factors associated with customers and competitors (external environment) and the firm itself (internal environment), envisioning a new or effective role for the firm in a creative manner, and aligning policies, practices, and resources to realize that vision. Utilizing empirical data, this case illustrates the evolution of the commercial vehicle industry in Turkey, changes in industry conditions, and competitive strategies employed by the incumbent and its Japanese rivals in various life cycle stages. The product’s quality of OMC was not up to the mark compared to the competitors. The technology utilized in Isuzu and Mitsubishi was far better than OMC. They failed to view Japanese companies as their competitors initially. Timely decisions were not taken. The product leadership, being market leader and first mover advantage all was lost by OMC.
Alternatives
OMC’s alternatives are: 1) increase Iveco’s share to 50 percent and provide new technology platforms; 2) sell 100 percent of OMC’s assets and business; 3) Concentrate on dominant products by improving quality, and improving on service and distribution making it competitive while eliminating all the weaker products.
Recommendation
Otoyol’s best options are to eliminate all the weak products and start investing in new technology to improve the quality of their dominant products or leave the market completely by selling the business.
Rationale
Having a 62.9 percent service sector, a 28.6 percent industrial sector, and an 8.5 percent agricultural sector, Turkey’s economy has grown to 18th in the world. Its textile, food and automotive manufacturing are the frontrunners in the industry sector. This has caused a rise demand over the years for commercial vehicles. Koc Holding Corporation (Koc)

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